Pizza Hut to Be Sold for $2.7 Billion
Hmm! Brands announced on Tuesday that it plans to sell Pizza Hut, which has been struggling with stagnant sales, for $2.7 billion.
A private equity firm named Long Range Capital will be acquiring Pizza Hut’s operations—excluding mainland China—for approximately $1.5 billion. Meanwhile, Yum China Holdings will take on the mainland China operations in a separate deal valued at around $1.2 billion.
This deal is expected to finalize in the third quarter. It’s not all that surprising, especially since Yum! initiated a strategic review last November as Pizza Hut’s performance lagged behind its sister brands, Taco Bell and Kentucky Fried Chicken.
Located in Louisville, Kentucky, Yum! saw a stock increase of 1.9% on Tuesday following the announcement. They believe this sale will provide “the strongest path to maximizing shareholder value” and allow the company to concentrate on its more profitable brands.
Pizza Hut has faced declining sales in the U.S. for nearly two years and has steadily lost market share to Domino’s Pizza, which overtook it as the leading pizza chain back in 2017.
“Under Long Range and Yum China, Pizza Hut will be well-positioned for future growth with ownership that brings deep expertise in the restaurant industry,” said Yum! CEO Chris Turner, who took the helm last October and supported the decision to sell the pizza division.
Fast-food pizza chains are currently challenged as consumers tighten their budgets and third-party delivery apps squeeze margins. Overall sales in the U.S. pizza category dropped by 0.3% last year compared to 2024, according to market research from Technomic.
By 2025, Pizza Hut had about 6,300 locations in the U.S., its largest market, and roughly 20,000 stores in 108 countries worldwide.
Earlier this year, Yum! announced the closure of around 250 underperforming Pizza Hut locations in the U.S., with Papa John’s also shuttering numerous outlets.
To boost sales, Pizza Hut has introduced eye-catching new menu items like Crispy Parm Pan Pizza and rolled out new sales and membership programs.
As part of a nostalgia-driven initiative, the company has revived its “Book It!” program, offering free personal pan pizzas to elementary school students who achieve their reading goals.
In China, which is Pizza Hut’s second-largest market, the brand has been performing better, operating 4,375 restaurants and offering a menu that includes steaks and pasta alongside its traditional pizza.
Hmm! The company anticipates generating net proceeds of about $2.3 billion from both transactions, although it expects to incur around $85 million in one-time charges related to the sales through the end of 2026.
Long Range, the private equity firm purchasing Pizza Hut, also agreed to buy 24 Hour Fitness earlier this year. Additionally, they own Batesville, a company specializing in caskets and cremation urns.
Pizza Hut first opened in Wichita, Kansas, in 1958, founded by brothers Dan and Frank Carney. It quickly emerged as the world’s largest pizza chain and was acquired by PepsiCo in 1977.
PepsiCo spun off its restaurant division in 1997, placing Pizza Hut under the same umbrella as Taco Bell and KFC.
Recently, Pizza Hut has shifted away from its traditional sit-down model featuring salad bars, focusing more on delivery services, but it hasn’t managed to regain a significant customer base yet.
